Article: Euro Effects

The Euro and its Impact on the U.S. Economy The euro is the official currency of the following 12 European nations: Belgium, Germany, Greece, Spain, France, Luxembourg, Ireland, Italy, The Netherlands, Austria, Portugal, and Finland. Although it has been the official currency since January 1,1999 it became physical tender which can be used by all participating countries on January 1,2002. The introduction of the euro into the world was truly a historic event; it represented a unity never before seen in the history of Europe, a common currency. After years of negotiations and much skepticism from around the globe, the implementation of the euro is no longer an abstract ideal, but a change that nations, corporations, and investors must

There are a lot of different pros and cons when asking this question. In my opinion this would be terrible idea because every economic system is not the same. Therefore if this were to take place it would it automatically eliminate a numerous amount of great opportunities and achievements that the United States economy has worked so hard for, for so long.

As of 2012, only seventeen of members of the European Union have decided to use Euros as their currency. In order for the members that adopted the Euro as their currency to successfully help their economic problems, the Eurozone members had to follow strict instructions put into place the European Union. The strict policies included strict control over inflation, government debt, and long-term interest rates (Mckee 525). The union put these strict policies into place to give the union the tools that it needed to take in order to help fix the economic crisis in each country participating in the Eurozone. Without the full cooperation of each country, it could cause the plans to fix the economic crisis within each country to fail because of the different interests by each individual country.

European Central Bank is like the US’s Federal Reserve System. Federal Reserve is the central banking system of the United States. It was formed on December 23, 1913, with the presentation of the Federal Reserve Act in reaction to a series of financial that displayed the need for central control of the financial structure.

The EU sought to simplify trade within European neighbors and to replace national currencies with a single shared currency that could compete with the dollar on the global stage. The members of the newly-formed European Union agreed to a fixed currency conversion rate when the Euro was adopted (Scheller). Initially, the EU only had 11 members, but membership has since grown to 25 member nations. These 25 member countries operate within what is called the Eurozone, over which the European Central Bank sets economic policy

The Denomination for the Euro coins consist of the 1, 2, 5, 10, and 50 cents with the 1 and 2 Euro coins. The Denomination for the euro banknotes consists of 5, 10, 20, 50, 100, 200, and 500 Euros. Some pictures are found on the banknotes and the coins of the Euro, these pictures include bridges, windows and doors. The pictures represent some information about Europe and its people, as the bridges represent communication, and the windows and doorways represent team working and unity.

The ruling elites are getting richer at the cost to the citizens. Shut up and Take It confines the conversation between the top and bottom. The Elite shouts imposing austerity to member countries. The elites are masterful, and reduced the population to nothing and nobody in the streets. In addition, they are authoritative at using cheap stories to swindle the masses. Stories of honor to be a member adding special events to disguise true intend. The elite had to create chaos for states, and as a result capitulated believing a better life in the Euro Zone. Militaries from members were often used to conquer and divide. Globalization falsely disguised under a canopy of hope and freedom; instead the elites' bankrupt countries having great debt taking out more

The article “Eurozone’s Drop In Inflation Carries More Fears Of Another Recession” from the New York Times, written by Jack Ewing, discussed of how inflation has dropped in the Eurozone to its lowest rate for nearly five years and the threat of Europe falling into deflation leading to another recession. The optimal or ideal inflation rate for Europe is at 2% and with its inflation rate dropping down to almost 0% borderline, more pressure is being added to the Europe Central Bank. Europe must come up with an aggressive plan to revive its weak economy.

As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a greenfield

The Monetary policy of all the member states is the responsibility of the European Central Bank, which is indirectly a part and parcel of the president of the bank and includes a central board of European Bank which includes heads of national central banks. Though, some countries were granted special permission under agreements with the European Union to use the Euro as their currency and print them on their own but they did not become a member of the Euro zone as their monetary policies were not under the control of the European Central Bank. These states that use the Euro as their currency but do not form part of the Euro zone are called the micro states.

On 25th May 1998, the 11 participating member states appointed the President, the Vice-President and the four members of the Executive Board of the European central bank. The European Central Bank was formed as the result of these appointments that came into force on 1 June 1998. Euro-system now consists of the European Central Banks and national central banks of the participating member states. The Euro-system was responsible for formulating and defining the single monetary policy, which was to take place in third stage. European Central Bank in the rest of 1998 took charge of finally testing the systems and

In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the adoption of the Euro these seventeen countries discontinued their old currencies and monetary policies. Monetary Policies

Third step - On 1 January 1999 final stage of EMU commenced with the irrevocable fixing of the exchange rates of the currencies of the 11 Member States initially participating in Monetary Union and with the conduct of a single monetary policy under the responsibility of the ECB.

The European Central bank in Frankfurt, Germany defines the monetary policy for the entire Euro area. It is a single monetary authority with a single monetary policy and primary objective to maintain price stability. The ECB sets interest rates at which it lends to commercial banks in the Eurozone. This controls money supply and inflation. It manages the Eurozones foreign currency reserves and the buying or selling currencies to balance exchange rates. It ensures that financial markets and institutions are well supervised. This makes sure the payments systems work well. It produces Euro’s banknotes by Eurozone countries. Last, the ECB monitors price trends and risks to price stability. There are three decision-making bodies: Governing Council, Executive Board, and General council. Governing Council is the main decision-making body that assesses economic and monetary developments. The Executive Board implements monetary policy and manages day-to-day operations. The General Council has more of an advisory and coordination role to help prepare for new countries joining the euro. The ECB works with the national central banks of all EU countries. Together they are the European System of Central Banks. This helps with cooperation between central banks and the Eurozone. The ECB chose a quantitative definition of price stability with three main reasons: to make monetary policy more transparent, provide a yardstick against what the public can hold the ECB accountable, and is

On New Year’s Day 1999 the euro (€) was launched in non-physical form, used only for electronic payments and accounting purposes. After careful and deliberate exchange rate fixing (with help from the ECB) against one another, the national currencies of participating countries became simple subdivisions of the euro, to allow for an easier transition. In January 2002, banknotes and coins entered circulation in 12 European nations; Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.